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Employers with computerised payrolls need to ensure that their software is updated to include revised tax tables ready for use on the first pay day after 6 April 2008. HMRC have published some clarification for employers regarding the introduction of the basic rate band limit following the 12 March 2008 Budget. The implementation of the tax deduction changes for the 2008/09 tax year was originally announced in the 2007 Budget.In the 2007 Budget the Chancellor announced the rates of tax deduction ... Continue Reading

Peter Arrowsmith FCA highlights a seclection of NIC matters, and provides a tip for the payment of bonuses to directors or employees in view of future increases in the Upper Earnings Limit.New National Insurance Number (NINO) RegulationsThe Social Security (National Insurance Numbers) Amendment Regulations 2008 (SI 2008/223) make amendments to the information required for adult registration as a result of the Immigration (Restrictions on Employment) Order 2007 (SI 2007/3290). Both took effect on ... Continue Reading

Paddy Behan provides a timely and topical view on VAT repayment claims, following a recent House of Lords decision. The following article was produced before the Budget on 12 March. Please refer to Budget Note 78 for details of proposed changes affecting VAT repayment claims.The BackgroundMost VAT registered businesses will know that, generally, a three-year time limit applies to claims for repayment of VAT overpaid.  [But see above comment]. However, the way that this time limit was introduced ... Continue Reading

HMRC have published amended regulations to deal with issues highlighted in the Demibourne case.The Special Commissioner’s decision in the case of Demibourne Ltd v Revenue and Customs Commissioners highlighted a number of tax issues for employers and their employees which can arise as a consequence of an employer’s failure to operate PAYE (Pay As You Earn). These issues relate to a situation where income tax has been paid in relation to what is PAYE income, but by the wrong legal person ... Continue Reading

HMRC have published details of progress being made under the Change Programme, which aims to support HMRC plans to modernise and transform its operations following the merger of the Inland Revenue and HM Revenue & Customs departments.In November 2006 the Chairman of HMRC announced a series of reviews on the future shape and direction of HMRC across the UK. The reviews are designed to take forward the consolidation of HMRC's estate following the creation of the department from the former ... Continue Reading

HM Revenue & Customs (HMRC) are writing to approximately 5,000 people who they believe are offshore account holders.Following up on in the offshore disclosure project in 2007, HMRC have begun sending letters to thousands of taxpayers who did not respond last year, demanding to know why tax is not owed to the Treasury on funds held in offshore bank accounts.Whilst there is nothing wrong in having an offshore account, the account holder does need to let HMRC know about any liabilities they may ... Continue Reading

Steve Allen, Director of VAT Solutions (UK) Ltd, summarises the VAT changes announced in the Budget, and gives a brief initial reaction.Steve AllenChanges relating solely to VATVAT registration threshold increased from £64,000 to £67,000 from 1 April 2008. VAT deregistration threshold increased from £62,000 to £65,000 from 1 April 2008. VAT registration and deregistration limits for relevant acquisitions from other EU Member States increased from £64,000 to £67,000 ... Continue Reading

Julie Butler FCA and Tom Le Santo ATT of Butler and Co provide an overview of the tax credits system.   Julie ButlerAdministrative Disarray or Lost Opportunities?The greatest publicity for the tax credit system has been the government errors, the overpayments, and the confusion but take away this veil and there is a strong helpful system to enjoy. The current tax credits system was introduced on 6 April 2003 and replaced the old system where tax relief was obtained through PAYE. This put ... Continue Reading

This summary has been prepared by Taxbriefs Financial Publishing and is for general information only. The proposals are in any event subject to amendment before the Finance Act is passed. It is recommended you seek competent professional advice before taking any action on the basis of the contents of this publication.Summary of the taxation provisionsIntroductionDifficult economic conditions and a raft of earlier announcements meant that Alistair Darling’s debut Budget contained few surprises. ... Continue Reading

The Government has considered the responses received to the recent consultation on income shifting and has confirmed that it needs a further period of consultation to ensure that the legislation provides clarity and certainty for businesses and their advisers.The Government now intends to introduce legislation through Finance Bill 2009 and will not enact legislation effective from 6 April 2008.Commenting on this postponement, Andrew Hubbard, Vice-President of the Chartered Institute of Taxation (CIOT), ... Continue Reading